Normally Quiet August Real Estate Market Continues to Roar

by | Aug 23, 2023

August is typically a slow month in real estate as people vacation then get ready for the start of the school year- spiking after school starts. However, the August market continues to roar.

bear roaring in front of house

The market has seen the strongest increase in the selling prices of Chicago-area homes since before fast-rising interest rates put a damper on the market in July 2022.

The median price of homes sold in the past week was up 8.9% from the same time a year ago, according to a weekly report posted at noon by Midwest Real Estate Data. At the same time last week, MRED reported the median price was up 8.4% from the corresponding week in 2022.

That’s two consecutive weeks with an increase of more than 8%, following a string of 55 weeks where prices were generally either flat with the year before or up by 4% or less.

What’s the deal?

First and foremost, the lowest inventory in recent history.  Buyers will need to compete for homes, offering up to 10% over list price, accepting the home as-is, and presenting strong financing.

Second, there is more confidence in the economy as their might not be a recession as feared.  Job growth continues also.

Buyers have begun to accept 7% plus mortgage interest rates as the new normal also.

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